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tv   Nightly Business Report  PBS  May 26, 2011 7:00pm-7:30pm PDT

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it doesn't mean that we rule out forever acquisition, that could come later on. >> tom: we appreciate the insights, and the global alcohol and spirits business, our guest this evening, the c.e.o. of pernodry card, pierre pringuet. >> tom: google launches an electronic wallet that lets you >> suzanne: a tiny game in the use your cellphone to pay for everything from lattes to dow today. clothes, and it lets merchants entice customers with deals of >> tom: yes, lots of better the day. >> in the future you find an offer you want, you save it to feelings in the last 48 hours your wallet with a click-- no certainly, despite kind of more clipping or printing. that drum beat of concerns over the economy six months ahead or so, let's go ahead and roll with tonight's market focus. spending and saving with your cell phone, but at what price. you're watching "nightly business report" for thursday, may 26. >> suzanne: but will paying with >> tom: stocks were able to make small gains for the second day you're watching "nightly business report" for thursday, may 26. in a row, but we saw a big rally this is "nightly business in bonds. let's start with the past 180 report" with susie gharib and sessions with the 10-year u.s. tom hudson. government bond yield. as this interest rate drops, the price of the bond rallies.
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this 3.06% is the lowest rate all year, fueled by growing this program is made possible by contributions to your pbs worries about the u.s. economy station from viewers like you. and possibly fewer bonds, as the debt ceiling negotiations continue on capital hill. captioning sponsored by wpbt a big place to watch in the market. >> tom: good evening everyone meantime, leading the dow was tech giant microsoft, jumping and thanks for tuning in. 2%. susie gharib is off tonight. i'm joined by suzanne pratt. trying to break its downward trend. hedge fund manager david einhorn called for c.e.o. steve ballmer google finally took the wraps to be replaced. einhorn points to microsoft's stock performance as a reason off google wallet. for ballmer to leave. einhorn owned nine million shares of microsoft as of late march. >> tom, the google effort put software on smart phones, it allows subscribers to use the device to pay for things. mobile payment services are let's talk about performance widely used in japan and under ballmer. ballmer has been c.e.o. for more already there are other u.s. companies testing similar than a decade. this is the past 10 years of m- applications. s-f-t shares. they're down 30% from the late >> tom: erika miller explains spring of 2000. there are some obstacles to the success of the google wallet. today again with a slight rally.
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>> reporter: it's a familiar the luxury business is treating tiffany well. routine. you go into a store, pick out its first quarter earnings came the items you need and pay with in a dime per share above estimates. cash or credit card. but if google and mastercard sales were up by double digits have their way, the experience will soon be much different. and margins were higher. shoppers will get personalized coupons on their cell phones, pay with the phone and have receipts immediately emailed. a wicked combination, and tiffany saw green. up 8.6%. it led the consumer mastercard's ed mclaughlin discretionary sector today, which was the strongest stock group. promises nothing short of life- changing technology. the rally takes tiffany >> we think the experience is absolutely revolutionary. to a new 52-week high, which is it's going to transform also a new all-time high for shopping. so, it's not simply the payment- shareholders. - which you can use paypass and the trusted mastercard network for-- all that like you would have before. it wasn't the only higher-end but now you can also get retailer to sparkle. coupons, rewards, you can redeem the offers, you can have your signet jewelers, owner of jared receipts right in your phone. and kay jewelers, was up 5%. >> reporter: mobile payment may earnings came in better than expected. be enticing to many consumers, this is a new 52-week high for but not everyone. coach, up 5%. a big concern is security. and polo ralph lauren recovered some of what it lost yesterday, plenty of people are up 3%. uncomfortable putting financial information on their cell phones. >> reporter: similar to an two other retailers-- shoe store a.t.m. card, the google wallet genesco raised its outlook-- will be protected by a pin number. shares hit a new 52-week high. the technology's roll-out will take time. electronics store h.h. greg tried to snap back after a the service is being be tested falling this year. strong earnings helped the stock in new york and san francisco, add almost 18%. and will be expanded nationwide this summer. currently only 120,000 merchants have the paypass technology needed to participate. drug maker abbott lab shed more
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google's stephanie tilenius says the appeal for stores is luring in customers with deals. than 1.5% as volume picked up. the national institutes of health stopped drug trials for >> offers will be delivered to its cholesterol treatment because it was found to be your inbox as an offer of the ineffective. day. you can also access offers via meantime, emergent bio-solutions rallied more than 15% to a your mobile apps like google three-year high. shopper and google wallet. >> reporter: it may surprise you that google and mastercard are the company is expected to get a u.s. government contract for its late to the game. there are a host of other tech anthrax vaccine. companies, phone carriers, banks and credit card issuers testing similar systems. finally, some financial fallout from the midwestern tornadoes one disadvantage for google and for shareholders of empire district electric. mastercard is their mobile payment system is currently only available to sprint customers. the company provides electricity in missouri, kansas, oklahoma and arkansas. "p.c. magazine's" lance ulanoff shares dove 15% after suspending says it's possible verizon and its quarterly dividend for the at&t might not participate. rest of the year. >> maybe they will go with someone else, for example, what and that's tonight's "market if apple comes out next week and focus." says "here's the new iphone 4s. it has n.f.c., it has smartcard technology, oh, and our partners are at&t and verizon." this could happen. and if this does happen, you have two competing technologies.
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>> reporter: and it's not just apple that could announce a competing mobile payment system. experts predict amazon and facebook will soon follow. erika miller, "nightly business report," new york. >> suzanne: here are the stories >> suzanne: when it comes to in tonight's n.b.r. newswheel: energy use, businesses spend stocks move higher despite some millions of dollars a year to heat and cool their buildings. weak economic news. tonight, we continue our series the dow rose eight points, the "planet forward," a partnership nasdaq was up 21 and the s&p 500 added five. with the george washington university social media project big board trading volume slipped using your ideas to power our future. to 861 million shares, while nasdaq volume continues to hold frank sesno introduces us to a just below two billion shares. new kind of network that is helping companies cut their energy costs. the nation's growth rate hit a speed bump in the first three months of the year as consumer >> reporter: social networking spending slumped. is the cool kid on the block, the commerce department says first-quarter g.d.p. came in at but can technology like this be 1.8%, that's down from 3.1% at used to cut energy costs and the end of last year. make money? new claims for jobless benefits erica rowell of duke university thinks it just might. she uploaded to "planet forward" reversed course this week, an idea about one duke alum who rising when a drop was expected. is hoping to turn a profit by the labor department says new creating a mini-energy network. claims rose by 10,000 to a seasonally adjusted 424,000. >> essentially, you can think of it as democratization of the power grid. a federal judge in wisconsin
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today struck down a controversial state law that stripped most collective bargaining rights from public brewster. workers, but that may not be the >> reporter: meet david brewster. final decision as wisconsin's he comes out of duke's nicolas supreme court takes up the issue school of the environment and he dreamed of a big network, one that would... >> ...fundamentally change the next month. way the electric power industry operates. >> reporter: how? by smoothing out the spikes. his company, enernoc, is trying to innovate in high-tech and still ahead, friending your low-tech ways. utility company, or how the the low-tech? concept of social networking can he works directly with building help businesses save big money managers to identify what energy on energy. they can live without when the it's tonight's "planet forward." grid is stressed-- raise the thermostat a few degrees, dim some lights. high-tech? >> tom: the vice president and a bipartisan group of enernoc tracks usage in real congressional negotiators met for a little over an hour today. time through its network and, they're working to hammer out an when the grid is stressed, can agreement to cut federal remotely lower the building's spending and raise the nation's debt ceiling. consumption. time runs out in early august. >> instead of relying on power plants to always feed electricity out of the system, lawmakers in the talks say they are making progress, but a key we can actually utilize the issue will be just how long any potential energy efficiency or demand reductions of electricity extension of the debt ceiling will last. at buildings. darren gersh takes a look. >> reporter: the seaport hotel in boston is part of enernoc's >> reporter: on the short end, a network. >> they came to the property, debt ceiling extension may last they analyzed where we could cut just until the cherry blossoms energy without impacting our come out again in washington-- about six months or so. budget watcher stan collender is guests and we committed to 300 kilowatts of reduction. not looking for the talks now
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underway to reach a long-term agreement. >> enernoc can both identify >> i think they are going to savings and control usage by using this smart-grid device need something at least symbolic, a fig leaf-- something that measures real-time a number of members of congress consumption. can hang their hats on that will >> reporter: the same way we all say, "well, it's not as much as communicate by email, each building tells enernoc how much i would have liked, but it's all power its using. we're going to get." >> most end-use energy users of electricity have no idea when my guess is they will also do a and how much energy they're relatively short-term increase. consuming. maybe just enough to get through >> reporter: here's how it next march, so they'll have to come back and do this again. works. utilities pay enernoc for the networking service and for any energy it saves. >> reporter: the outline of the enernoc then shares the revenue with the building owners. emerging budget agreement is together, they reduce energy pretty clear. roughly $1 trillion in consumption and make money. discretionary spending cuts over ten years; cuts to entitlement like farm programs, federal >> the thing about demand retirement benefits and response is that you can unemployment compensation; participate and be conservative and some kind of budget with your energy consumption enforcement rule. when they ask you to, or we can all suffer a brownout or a that could be a cap on spending blackout when the grid goes or some kind of trigger for down. automatic cuts if debt or >> reporter: demand response spending exceeds a target. isn't new, but brewster says that today's technology makes it efficient. that would be enough to reach a deal on the debt ceiling, but >> its sort of the last frontier likely not enough to push this of information technology, and issue past the next election, so our mission is really to says political economist andy bring technology to bear to help business get a better grasp on laperriere. how they're using energy so that >> i think on the high end it is probably only a one-year ultimately they can make better
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extension. energy decisions. one year is about a $1 trillion >> reporter: enernoc wasn't the only company to bring high-tech communications to energy increase in the debt ceiling, savings. and most of the folks i talk to regen energy uploaded a video to on capitol hill think that most planet forward, showing off what members of congress don't want to vote for a $2 trillion debt it calls "swarm logic" ceiling which would take you connecting smaller devices through the election. wirelessly-- communicating like bees-- to raise or lower energy >> reporter: so far, participants in the talks say the tone is positive, but keep use as needed in one building. in mind that the goal many budget experts say we need to so, while networking can change your social life and make you hit is more than $4 trillion in cuts. more-- or less-- productive, it's quietly moving the planet the negotiations now underway will get a quarter of the way forward. there. >> suzanne: joining us now, >> that's a pretty modest down payment on what's needed, but frank sesno of "planet forward." >> suzanne: joining us now that is where things are headed. frank sesno. >> reporter: another big budget issue will come up this fall. a very cool story, no pun the payroll tax holiday expires next year. intended. exactly how does this work? the obama administration is >> so say we'll take a real likely to push for an extension. life example, there's a chain of smaeshlgs in southern but given the huge deficit, that faces long odds. california, 150 of them. they go to enernoc, they sign darren gersh, "nightly business report," washington. them up. if suddenly there's a hot day and all of the air conditioners in the state go on, the utility or someone in the grid can go to enernoc and
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say we need x amount of power, they push the button and dispch a charge to all 150 supermarkets, they dim the lights by about 30, 40%, they turn off some of the anti-sweat devices, they back off the air conditioning a little bit, and you have essentially produced power, and you avoided a brownout. it's kind of like a virtual power plant. >> suzanne: and how much could the supermarket potentially save, do you think? >> well, in this particular case, the way this works, this >> tom: america and emerging is the a large chain in markets are bellying up to the bar more often. alcohol sales in the u.s. and in southern california, just for developing economies have been picking up. signing up they get a quarter million dollars a year without names like jameson whiskey, having to lower their power. and if they lower their powers absolut vodka and chivas scotch have fueled the profit growth at french liquor giant pernod because they have to, then they split the saves with ricard to the tune of about 7% this year. enernoc. and there's a huge amount of we spoke with the company's this reserve power out there, so it really is a little magic c.e.o. pierre pringuet, starting with how he sees the u.s. trick. >> suzanne: what is the economy. potential for this technology, do you think? >> technology, there's a lot >> well, it's definitely improving. of potential, because think of and we can see that today. it this way. we call it demand response. the spirit market is growing, there's the equivalent of back to growth.
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so what is good for us is tha three nuclear power plants worth of demand response power out there. so there's a lot of power, call it the extra stuff that... >> tom: what do you think is you don't really need, you driving that with unemployment know, you back off the a. c. a still generally thought of as little bit, you back off the pretty high in the united states? >> yes indeed. lights a little bit, you're but when we look at some still seeing, you're still consumer confidence index, it cool, but not quite where you is improving. were before. so there's a lot. so i think that's the >> suzanne: i'm going to think of you the next time i turn on background situation, and for the lights. us it's relatively -- >>,r time you turn off the lights. >> suzanne: okay, frank sesno >> tom: you are based in of planet forward. france. western europe is the weakest spot for new terms of growth. is they a reflection of the european economy and some of >> tom: here's what we're the debt questions that are watching for tomorrow: an update on the state of happening with governments? spending when the commerce department releases april's personal income and spending >> i would say that france is data. mark skousen, editor of "forecasts and strategies," is back as our "market monitor." behaving relatively well. he has his two favorite stocks we posted 4% growth, organic in undervalued sectors in the u.s. and europe. growth for the last nine months. probably the worst is more in and, the higher cost of jet fuel. we'll look at what the upshot is southern europe, so spain and for airlines. greece, which are the most -- >> suzanne: honda predicts its u.s. and canadian plants will be almost back to normal production >> tom: those two countries levels by august.
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are in the crunch of the debt that's sooner the automaker expected, thanks in part to a crisis that's going on in rebound by its parts suppliers. southern europe. do you see your company being honda reduced its manufacturing impact bid that through this following japan's earthquake and year into next year? tsunami back in march, but >> i consider that there is no production of its popular 2012 civic model will continue at a sign of improvement in those reduced rate due to limited two countries, spain, i would supplies of some parts. last month, the civic was the third-best selling car in the also add portugal. u.s. market. but fortunately what we can see is that the situation is improving in northern europe, for insans the u. k., the spirit market is growing. >> tom: a fox in the then thousand, house that's what so germany is also very well, the justice department is not to forget about eastern calling the former director of the nasdaq. europe, which is absolutely he faces up to 20 years in booming. >> tom: have you been growing prison. johnson admitted to using his the company through post in the exchange's market acquisitions, certainly over intelligence un to it gain the last decade, back in 2001 inside information on nasdaq you bought a good chunk of listed stocks. he made over $600,000 trading seagrams wine and spirits in stocks on that information. 2005 a partnership and then got the absolute vodka brand in 2008. there's been salk r talk of a big competitor interested in cuervo. are you interested in cuervo?
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>> well, our position today is not to make any further acquisition for the time being. you mentioned the three acquisitions, i should mention that altogether it represented 20 billion euros of investment. so now the focus is really to continue to develop the company, and we communicated to the market target, which is by june 2012, the main focus. >> tom: so looking now to pay >> suzanne: the field for tech i.p.o.s might soon get a bit down the debt that you incured crowded. after linked-in's spectacular by the acquisition strategy, debut last week, there are as opposed to going out and rumblings that zynga, the social gaming juggernaut, is planning looking for growth via to go public. purchases? >> it's definitely for the for many, including tonight's time being the organization. commentator, it's reminiscent of the go-go nineties. here's harry lin, executive in residence at idea-lab, a startup incubator in pasadena california. >> within the professional circles that i travel, i am hearing so much about the frothiness of the market that i'm beginning to think that i work at a starbucks as a
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barista. extra-froth please! no froth! the circles i'm talking about are technology startups, the internet industry, and the investors and entrepreneurs who drive those businesses. the so-called "frothy market" began in earnest in the second- half of 2010, when group-buying startups such as groupon were garnering eye-bleeding valuations by private investors. and not a week went by without a tech blog-fueled tizzy about facebook and how it's worth, oh, a trillion dollars. what i find fascinating are several of the tangible consequences of the perceived frothiness of the tech and internet markets. startups that just last year who said they weren't going to go public are-- surprise!-- filing for i.p.o.s. early-stage investors, such as angels and incubators, can't get deals done because startup founders are demanding crazy- high valuations. i've got would-be entrepreneurs pitching me their latest, greatest startup ideas-- like a group-couponing designer- clothing-flash-sale social-
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networking iphone-app mobile check-in electric car. whether you like your technology latte with extra froth or no froth, these startup market dynamics are real. doesn't matter if valuations are more perception than p-to-e based, because as this froth alchemizes into liquid exits for venture capital investors and startup entrepreneurs, we'll all be wishing we were drinking the same foam. i'm harry lin. >> suzanne: that's "nightly business report" for thursday, may 26. i'm suzanne pratt. good night everyone and good night to you too, tom. >> tom: good night suzanne. i'm tom hudson. good night everyone. we hope to see all of you again tomorrow night. "nightly business report" is made possible by:
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this program was made possible by contributions to your pbs station from viewers like you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video "how wall street works". to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org.
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